AIM-capable software requirements

AIM works on a self-certification model. A software system must meet the proposed definition of an AIM-capable accounting system contained in section RC 7B of the Income Tax Act 2007 in order to gain approval from the Commissioner.

Definition in legislation

To meet the definition and be approved as an AIM-capable accounting system, the core software accounting package must have the ability to:

generate and keep comprehensive financial accounts, including accounting income and expenditure, ledger accounts, trial balances, bank account reconciliations and journals on an on-demand basis, in accordance with good accounting and tax practices

calculate tax liabilities using tax adjustments in accordance with the technical determination

for tax adjustments no included in the determinations, ensure they reasonably accurately assess tax liabilities

recalculate all financial accounts and liabilities retrospectively and produce reports as required by the Commissioner and e-communicate electronically with Inland Revenue and provide the right level of help and assistance to its users.

Client intermediation

The linking and delinking of a client by their tax agent is excluded from the scope of gateway services. This can be done in myIR Secure Online Services.

Year-to-date calculations

AIM payments are based on a year-to-date calculation. Software must be able to work out all financial accounts and liabilities retrospectively and produce reports. This allows for errors to be corrected easily.

Working out AIM adjustments

Your software needs to incorporate end of year adjustments throughout the year to more accurately reflect taxable income.

Statements of activity

Software will need to send us information with each payment that shows how it came to this amount. This is a statement of activity and is not treated as an income tax return. Indicative technical schemata for statements of activity are available on GitHub.

Approval and revocation of AIM providers

You must apply to us for approval to use your AIM-capable software. Your request may be approved if there will be no negative affect on the integrity of the tax system. As part of the application process, you will be required to complete a statutory declaration which must:

specify the name of your software

confirm you will regularly update your software, and

confirm you will provide any other information required by the Commissioner.

You can apply for approval for an AIM-capable product for use by:

businesses with gross income under $5 million a year, or

a class of businesses with gross income over $5 million a year - these applications will only be approved if there is minimal risk that this will result in less net revenue collectible over time.

Revocation of a software provider

The Commissioner may revoke approval for an AIM provider in certain circumstances, including if:

anything in the statutory declaration is not true or does not continue to be true after it is made, or

revoking the approval protects the integrity of the tax system.

This will not take effect until the following tax year so any businesses using your software are not disadvantaged. You will be given the opportunity to discuss any concerns and have the opportunity to resolve them before your approval is revoked.

Software provider decision to cease being approved

You may choose to revoke the approval. You must notify your customers of this decision and that this will take effect in the following tax year. We may publish a notice regarding approvals or revocations.